Why is the Cardano (ADA) Price Down Today?

TL;DR

• Cardano (ADA) dropped to $0.82 following Trump’s executive order, with some attributing the dip to a “sell the news” reaction.

• Cardano’s founder, Charles Hoskinson, was not invited to Trump’s March 7 White House crypto summit, raising concerns about his role in future regulatory discussions.

ADA Heads South

Cardano’s native token took center stage on March 3, with its price exploding by 60% daily and reaching over $1.10. The substantial resurgence resulted from Donald Trump’s statement that his administration will move forward with establishing a strategic crypto reserve that will include ADA (among other leading cryptocurrencies).

Several hours ago, the US president signed the executive order on the initiative. However, ADA was not included in the order as it was solely focused on bitcoin.

Some industry participants previously warned that Trump’s eventual green light may result in a “sell the news” scenario.

ADA plunged to as low as $0.82 before rebounding to the current $0.88 (per CoinGecko’s data), which represents a 6% decline on a 24-hour scale. The asset’s market capitalization is around $31 billion, meaning it remains the eighth-biggest in the sector, surpassing Dogecoin (DOGE).

Another factor that may have triggered downward pressure on ADA’s valuation is the upcoming crypto summit. The gathering will be held at the White House later today (March 7) and will supposedly be joined by multiple crypto leaders, including Ripple’s CEO Brad Garlinghouse, Coinbase’s boss Brian Armstrong, Strategy’s Executive Chairman Michael Saylor, and more.

Cardano’s founder, Charles Hoskinson, was also rumored to be among the participants. Earlier this week, though, he disclosed that he hadn’t received an invitation for the event. 

Several months ago, Hoskinson revealed his intentions to work alongside Trump’s administration to create a comprehensive and potentially more favorable regulatory environment for the cryptocurrency sector. However, his exclusion from the guest list may hamper that ambition. 

Waiting for These Bullish Factors

Despite ADA’s retreat in the past hours, some elements suggest that the asset could rise to new peaks soon.

One example is the potential support coming from Gemini. Tyler Winklevoss (co-founder of the US-based crypto exchange) recently hinted that ADA might be listed on the platform. Such a development would increase the token’s liquidity and accessibility and may spark upward pressure on the price. 

Another factor is the possible launch of a spot ADA exchange-traded fund (ETF) in America. The world’s largest digital asset manager, Grayscale, filed with the US SEC to introduce that type of product in mid-February, and the Commission acknowledged the application a few weeks later.

This investment vehicle would allow investors to gain exposure to the asset without dealing with exchanges or worrying about self-custody. According to Polymarket, the approval odds before the end of 2025 stand at roughly 70%.

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